Arbitrage on Forex - Earnings based on price movement

Earnings based on price movement, which is not tied to any monetary unit or direction, is one of the most reliable ways in the market. Initially, the tactics of arbitration spread in the sphere of stock and commodity exchanges. Arbitrage on Forex began its functioning in the late XX century.

The late optimization is explained by the basic architecture of the Forex market. But, despite the difficulties, still managed to introduce the tactics of arbitration and the most popular market today. Since then, several popular strategies have emerged that have developed in arbitrage tactics.

There is a popular, but not the most effective technique, called "triple arbitration". The essence of this technique is that there is trade between 3 pairs of currencies. In this case, earnings are formed from the difference between the artificial and real exchange rate of the third currency. This method does not bring real income, and most often leads to an error in the calculation of the volume of orders.

Arbitrage on forex with adviser Megatrader has several effective methods, which should be considered more closely. But before you learn more about strategies, you need to understand exactly what Forex is. After all, this is not only a spot currency market, but also currency futures, the currency on which can have a completely different value. Therefore, there is an opportunity to earn on the purchase and sale of currencies, performing operations that are opposed to each other on sites with different values ​​of the chosen currency.

Arbitrage on forex has another strategy based on correlation, the so-called spread trading. This strategy implies earnings on the difference between the cost of 2 or more instruments. This strategy is one of the most reliable, and offers one of the highest earnings. At the same time, the correlation strategy has minimal risks of losing finance. Work begins with some actions that you need to perform before placing orders:

You must select a DC, which has a minimum spread. At the same time, a DC with a floating spread is allowed;

Choosing tools for work is in the long run;

It is best to use the construction of a graph showing the difference between a pair "spread".

The Forex market has a sufficient number of tools that you can use, but it's best to start working with the dollar index. The internal optimized algorithm for calculating the index of this currency, for a long time, the "spread" is in a certain range. That's why this strategy can be called one of the most popular arbitrage strategies in the Forex market. In this case, the risks of fraud are minimal, so this method is an absolutely honest method of earning. A particular case of a correlation strategy is the purchase / sale of a calendar "spread". In this case, the trade is not based on the range, in the nearest contracts.